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Are microgrids the solution to airports’ looming power challenge?

Airports could evolve into energy as well as transport hubs

By Charlotte Dubec and Karen Larbey | July 22, 2024

Airports’ power requirements could rise tenfold over the next 25 years, so leadership teams need to put some thought into meeting the new demand. Microgrids could hold some of the answer.
Aerospace
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The next few years are likely to be challenging for airports worldwide. Net zero ambitions and geopolitical considerations are driving rapid changes in aircraft propulsion and the operation and overall accessibility of airport services. Additionally, climate change is increasing the frequency of extreme weather events, which, in some cases, is impacting airport operations.

These are separate processes, but what unites them is that they are likely to lead to a massive increase in the need for power across an airport’s infrastructure. Estimates vary, but analysis from the World Economic Forum suggests that by 2050, airports’ power requirements will be five to ten times higher than they are today.[1]

Meeting this is well beyond the reach of simple efficiency gains, and there is a growing awareness that airports need to make extensive infrastructure investments if they are going to be able to keep up with demand, particularly if the extra power needs to be generated in clean ways.

It is also worth noting that some airports, particularly regional airports with a lot of physical space, are already in the process of investigating and even implementing power generation on their estate. Wind turbines are not on the agenda, but racks of solar panels or even small hydrogen generation plants are being installed in some carefully considered locations.

This could lead to airports changing their relationship with energy providers. In some instances they are becoming power producers, contributing to the wider local community’s power requirements. Taking this process to its logical conclusion, some airports are already in the process of operating in parallel with their national grids by putting microgrids in place.

This article will look at the rise of microgrids from an airport perspective, discuss the advantages and outline some of the challenges.

A quick note on terminology: while energy and power are sometimes used interchangeably, for the purposes of this discussion, we will be using energy as power in its raw state and power as energy in its usable form: energy is what goes into a grid, power is what comes out of a plug-socket.

What is a microgrid?

Without going too far into the technical details, a microgrid is a self-contained power network that is connected to, but able to run in parallel with, local, regional or national power infrastructure.[2] From an airport perspective, they potentially offer several benefits:

  1. Enhance resilience: An airport could get back on its feet more quickly in the event of a natural catastrophe that damaged infrastructure away from the airport itself. The operational and financial ramifications of an airport losing power are already significant and they could potentially rise as demand for power grows.
    • Related to this, the risk of natural disasters is rising and that is putting pressure on local and national infrastructure.[3] These incidents can take many forms, but being able to operate in what is known as ‘island mode’, can potentially keep an airport operating, which is important from both a financial and a disaster recovery perspective.
    • It would resolve the potential issue of diesel generators not having the capacity to support future airport operations if there is a significant outage on the local grid, and potentially reduce the need to store diesel at an airport for anything but the most extreme circumstances.
  2. Flexible about power: A microgrid would enable an airport to be flexible about the type of power that it uses and potentially scale up generation to meet changing needs from passengers, staff and third parties such as supply chain partners, without having to go through the often long, complicated, and bureaucratic process of applying to change through local, regional or national government structures.
    • The rising demands for power in other industries[4] should also be factored in. As we have seen with demand for sustainable aviation fuel (SAF), many industries are in the process of decarbonising and simultaneously increasing their demand for power. Having a microgrid in place with an element of self-generation could ensure that airports are not having to compete for power[5].
  3. Be seen as green: A microgrid can underscore the aviation industry’s commitment to a lower-carbon future by giving airports the tools to manage generation and communicate the steps that they are making to live up to their responsibilities.
    • There are changing power requirements in terms of both the form of power and the need to generate it with less carbon. As airports are encouraged, and in some cases incentivised at a government level, to move to cleaner sources of energy, setting up a microgrid could help airport operations meet their obligations more easily and more transparently because they would be able to track and report their generation and usage.

At this point there are only a handful of airports that have implemented microgrids, but they are in place more widely in several other industries including data centres, and some hospitals and commercial buildings, so there is plenty of experience in the power sector at setting up microgrids.

What are the risks?

Setting up a microgrid sounds like a logical solution to the growing appetite for power, the rising risk of natural disasters and the increasing competition for power from other industries. There are several factors that should be considered when contemplating the process of setting one up.

The most obvious is that power generation can represent a catastrophic risk in and of itself and that combining that with a complex environment such as an airport is a process that needs to be approached carefully. As stated above though, there are several other sectors that are embracing microgrids, so there are several active projects that can be adapted to the unique circumstances of the aviation industry.

From a financial perspective, while they can be structured to pay for themselves in the long term, capital expenditure can be significant during the early phases. A clear view of what is already in place and what needs to be put in place in what order is needed at every level of the business.

Smoothing demand spikes for electricity from a microgrid is also a challenge. While significant improvements in battery technology are being made, seemingly every day, at this point a microgrid will need to be carefully managed to ensure that it can smooth out peaks and troughs in demand.

Finally, while they are called microgrids, they unlikely to be small projects to implement. Airport leadership need to approach microgrid projects with their eyes open and recognise that while it could be the solution to many challenges in the long term, in the short term, installation is likely to be complicated and will need careful management and communication.[6]

Managing power as a service

For airports though, there is the question of how far from their basic remit do they want to move. Some management teams will be happy to take on the role in managing a microgrid in addition to their primary objective of offering a hub that brings aircraft, passengers and cargo together. The process of power system implementation, management and upgrade would be an unwelcome distraction to others however.

There are several power companies willing to work either in partnership with airports or on a pure ‘as a service’ model, where the power infrastructure provider owns the process and manages everything around it. It’s a model that is being taken up by both airports[7] and other public transport operators[8] in some countries as they look to manage changes to their infrastructure.

Ultimately, implementation of an appropriately sized and strategically located power infrastructure could be one of the biggest challenges that the aviation industry faces over the next few years, particularly airside where enhanced safety procedures are required and there is a need to minimise a wide range of risks. Change tends to make risk evolve, so involving as many perspectives as possible at an early stage in a project’s development could well offer benefits.

Footnotes

  1. Target True Zero: Delivering the Infrastructure for Battery and Hydrogen-Powered Flight. Return to article
  2. Why airports turn to microgrids for sustainability. Return to article
  3. India Is Braced for Months of Power Outages Amid a Blistering Heatwave. Return to article
  4. CEO of UK's National Grid warns of datacenters' thirst for power. Return to article
  5. New Question At American Airports - What Is A Microgrid? Return to article
  6. Harnessing the power of microgrids for resilient Airports. Return to article
  7. Pittsburgh Airport’s Microgrid Is A Worthy But Tough To Duplicate Example Of Resiliency. Return to article
  8. AlphaStruxure and Montgomery County Break Ground on Nation's Largest Renewable Energy-Powered Transit Depot. Return to article

Authors


Head of ESG, Global Aviation & Space

Head of Industry, Global Aviation & Space

Contacts


Derek Greaves
Head of Aviation – Canada

Shane Rambhaccus
Client Executive - Canada

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